Sirius XM Radio, Inc. (NASDAQ:SIRI) Dips After iRadio Launch

As Apple launched its 2013 WWDC and unveiled its iRadio or iTunes Radio service this Monday, the stock price of two of the new service’s closest rivals moved, but in opposite directions. Sirius XM Radio, Inc. (NASDAQ:SIRI) took a late-session dip on Monday in the wake of the news and logged another red close yesterday.

Perhaps contrary to what some expected, SIRI was the stock that dipped and Pandora Media, Inc. (NYSE:P) closed green after a Monday afternoon surge. The revealed feature list of Apple’s iRadio mostly coincided with what was anticipated – the new service will deliver streaming musical content that will adapt to the user’s musical tastes, sourcing select songs from the entire iTunes catalog. The service will come in a surprising free version, including text and audio advertising, and a paid version that will have a $25 yearly fee. This price already beats Pandora’s yearly subscription by more than a tenner.

What was potentially more bothersome for SIRI was that Apple also announced several car makers will start including an increasing number of iOS features in their vehicles next year. With names like Opel, Mercedes, Honda and Nissan participating in this undertaking, this could mean a dampened outlook on SIRI‘s future. It’s no secret the satellite radio service SIRI provides in new car sales is a sizable source of revenue for the company. Now Apple seems to be trundling onto the same turf, even if a little late to the streaming music party.

It remains to be seen whether the integration of enough iOS features will manage to sway a sufficient number of people into deciding it’s not worth the bother to have a separate service for your streaming radio.

SIRI is currently trading flat in the early session.